Analyzing First Northern Community Bancorp (OTCMKTS:FNRN) & Sierra Bancorp (NASDAQ:BSRR)

Sierra Bancorp (NASDAQ:BSRR) and First Northern Community Bancorp (OTCMKTS:FNRN) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Volatility and Risk

Sierra Bancorp has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, First Northern Community Bancorp has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500.

Profitability

This table compares Sierra Bancorp and First Northern Community Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sierra Bancorp	20.96%	11.82%	1.14%
First Northern Community Bancorp	23.90%	10.57%	1.12%

Insider & Institutional Ownership

55.4% of Sierra Bancorp shares are held by institutional investors. Comparatively, 17.9% of First Northern Community Bancorp shares are held by institutional investors. 11.9% of Sierra Bancorp shares are held by company insiders. Comparatively, 11.8% of First Northern Community Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Sierra Bancorp and First Northern Community Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sierra Bancorp	$146.49 million	2.92	$42.33 million	$3.12	10.40
First Northern Community Bancorp	$88.40 million	2.64	$21.10 million	$1.26	11.22

Sierra Bancorp has higher revenue and earnings than First Northern Community Bancorp. Sierra Bancorp is trading at a lower price-to-earnings ratio than First Northern Community Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Sierra Bancorp and First Northern Community Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sierra Bancorp	0	1	2	1	3.00
First Northern Community Bancorp	0	0	0	0	0.00

Sierra Bancorp presently has a consensus target price of $38.50, indicating a potential upside of 18.61%. Given Sierra Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe Sierra Bancorp is more favorable than First Northern Community Bancorp.

Summary

Sierra Bancorp beats First Northern Community Bancorp on 13 of the 15 factors compared between the two stocks.

About Sierra Bancorp

Sierra Bancorp operates as the bank holding company for Bank of the Sierra that provides retail and commercial banking services to individuals and businesses in California. It accepts various deposit products, such as checking accounts, savings accounts, money market demand accounts, time deposits, retirement accounts, and sweep accounts. The company's loan products include agricultural, commercial, consumer, real estate, construction, and mortgage loans. It also offers automated teller machines; electronic point-of-sale payment alternatives; online and automated telephone banking services; and remote deposit capture and automated payroll services for business customers. Sierra Bancorp was founded in 1977 and is headquartered in Porterville, California.

About First Northern Community Bancorp

First Northern Community Bancorp operates as the bank holding company for First Northern Bank of Dixon that provides commercial banking products and services to individuals, and small and medium sized businesses. The company accepts demand deposits, interest-bearing transaction deposits, savings and money market deposit accounts, and time deposits. It also offers commercial, commercial real estate, agriculture, residential mortgage, residential construction, and consumer loans. In addition, the company provides debit and credit cards; investment and brokerage services; alternative investment products, and fiduciary and other financial services; and equipment leasing, merchant card processing, payroll, and international banking services through third parties. Further, it offers cashier's checks, safe deposit boxes, and other customary banking services. The company operates branches located in the cities of Auburn, Colusa, Davis, Dixon, Fairfield, Orland, Rancho Cordova, Roseville, Sacramento, Vacaville, West Sacramento, Winters, Willows, and Woodland; satellite banking office inside a retirement community in the city of Davis; residential mortgage loan office in Davis; and commercial loan office in the Contra Costa County city of Walnut Creek. First Northern Community Bancorp was founded in 1910 and is headquartered in Dixon, California.